BOOK EXCERPT FROM THE BOOM AFTER THE BUBBLE: ANDREW CORDLE
“I’m looking for a three-bedroom, two-bathroom
booming right now for the “buy, fix and sell”
home; I want a master suite, a twocar garage, two
investor, due to supply and demand and because
story, fireplace, etc.” They have their wish list
we just don’t have that much competition. My
figured out. And they also tell the agent, “I need to
investment company will do as many rehabs as we
live in this particular area.” Sometimes they draw
can in 2013—probably around 300 houses. In the
the lines closer. “I want to live between this road
Chicago West and northwest Indiana area, we
and this street right here.” They give the real estate
hope to make around $20,000 to $35,000 per
agent parameters.
house, on at least 100 homes this year. This
opportunity will not always be here. I will repeat: It
So, I have a house available in Merrillville and I
is probably about a three to five-year window.
have a house in another city about twenty miles
away. If someone has decided they need to move
to Merrillville, they’re not looking to move to
Hammond. So the agent is not going to go pull
houses from Hammond, which is twenty minutes
away, or Lansing, Illinois, which is thirty minutes
away. Instead, they will look for houses in
Merrillville, or wherever the buyer chooses. So, I
will go back to the original question.
In Merrillville Indiana, how many “for sale” homes
am I competing with? The answer is: maybe
twenty. Maybe. It’s probably only a dozen. So my
final challenging question to all investors is this:
So, if you’re looking to get into real estate, I URGE
“Can you be the best rehabber out of twelve or
you to jump in right now! Because of the market,
fifteen rehabbers in your area?” You don’t have to
you WILL be able to make money on your “buy, fix
be the best rehabber in America to make money in
and sell” investments right now. When dealing with
real estate. You don’t have to be the best in your
finance and real estate, Rule #1 states that things
state. But you should strive to be the best in your
are never static. There is always movement and
neighborhood! Remember this: most of those
change of direction; so while this window is open,
people “fixing up” houses don’t know what they’re
we will work and expand. We will open up a second
doing; they’re just winging it. So the advantage is
branch. Not only will we plan on rehabbing a
yours and there will never be opportunity like there
hundred houses in the Chicago area, we will go
is today.
down to Atlanta and do a hundred there, too. We
will take advantage of the market and do business,
To recap, this last year, when the bubble burst, a
before the window closes and a different type of
new market was created. And that market is
window opens to investors.